| ▲ | tl2do 5 hours ago |
| Instead of pouring more money into OpenAI and Anthropic, Nvidia should invest more in expanding production capacity for the RTX 5000 series and future generations. High-end consumer GPU availability is still constrained, especially for the RTX 5090, and street prices remain elevated. Nvidia should come back to the consumer side. |
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| ▲ | wingmanjd 5 hours ago | parent | next [-] |
| Datacenter income for nVidia last quarter was something like 62B vs the gaming market of <4B. While not quite a rounding error, it feels like the gaming market is just too small for them to put more resources toward it for us consumer folks. https://nvidianews.nvidia.com/news/nvidia-announces-financia... |
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| ▲ | PenguinCoder 5 hours ago | parent | next [-] | | It is insanely stupid that '4B' with a B, is 'too small' of an operating space. | | |
| ▲ | chii 5 hours ago | parent [-] | | The absolute value is irrelevant - it's the opportunity cost that determines this. It doesn't matter if the consumer market is 4T, if the AI market is 60T! | | |
| ▲ | mitthrowaway2 2 hours ago | parent | next [-] | | One strategic reason is to remove oxygen from competitors. Otherwise someone will scoop up the gaming market and put the proceeds into developing technology to compete with NVIDIA in the more lucrative AI space. | | |
| ▲ | zihotki an hour ago | parent [-] | | I wonder who is going to fill the gaming market if AI market focused companies would simply outbid them during manufacturing? All available and not yet available manufacture is pivoting to AI market |
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| ▲ | zmgsabst 2 hours ago | parent | prev [-] | | “I wouldn’t pick up $20 if there was $100 on the ground!” Most people would pick up both. These economic proclamations don’t seem to make sense, when applied to different contexts — which suggests what you’re saying might be folk wisdom rather than sound theory (and greatly over simplifying the problem). You’re also discounting ecosystem effects — gaming GPUs driving demand for datacenter and workstation GPUs as hobbyist experimentation turns into industrial usage. We don’t know what would happen if nVidia stopped suppressing the GPU market, because it’s never been tried — nVidia has always viciously undercut their own grassroots. | | |
| ▲ | armadyl 2 hours ago | parent | next [-] | | > “I wouldn’t pick up $20 if there was $100 on the ground!” Most people would pick up both. No, it’s more like there’s a massive pile of both $20s and $100s on the ground. You wouldn’t waste time running between the two, you’d focus on the $100s | |
| ▲ | chii an hour ago | parent | prev | next [-] | | > Most people would pick up both. if you're within reach of both, then it's not a choice, and there's no opportunity cost in picking just one - you'd be taking both. If not within reach of both but just one, and you picking one up means someone else might pick up the other, then which would you choose? The other is then by definition, the opportunity cost. | |
| ▲ | saaaaaam an hour ago | parent | prev | next [-] | | You’re standing on a traffic island in the middle of a busy road. The lights change allowing you to cross. On one side there is a $20 note, on the other there is a $100 note. Which side do you go to first? | |
| ▲ | reppap 2 hours ago | parent | prev | next [-] | | The problem is that Nvidia cannot make infinite amounts of chips so they actually can't pick up both. | |
| ▲ | delaminator an hour ago | parent | prev [-] | | If you were carrying heavy shopping in both arms would you stop to pick up a quarter? A dollar? |
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| ▲ | SirMaster 4 hours ago | parent | prev | next [-] | | But so many gamers want to buy GPUs and can’t because they are sold out or won’t because they are super price inflated. Wouldn’t the gaming market be larger if the products were actually available and at their actual MSRP? | | |
| ▲ | danpalmer 4 hours ago | parent | next [-] | | Nvidia can't sell 10x the number of GPUs they sell. As much as the supply issues are discussed, it would likely take them a long time to just double the market. They could try to become the vendor of choice for the PS6/next xbox, but that's a big strategy shift for again maybe double the market, not 10x the market. On the other hand right now the market doesn't seem to think that the >60bn of datacenter revenue is going away or even going to slow down _growing_ any time soon. Just adding 10% more revenue there is worth more than doubling their GPU business which they likely can't do. | | | |
| ▲ | satvikpendem 3 hours ago | parent | prev [-] | | No. Enterprise customers generate vastly more revenue and profit than consumers can. |
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| ▲ | yndoendo 5 hours ago | parent | prev [-] | | That is not substantiable. AI bubble is wealthy hype like a single drop of blood can be used to validate 100 different diagnostic test. Reality is parts per million fails this along with reusable medium. Wealth latches to idiocy. Gaming and CAD market are real expectations that latch to reality. Grow the education systems and grow both. So is matrix math, such as hashing. AI has reached a state of software issue, not hardware. And the divergence of AI hardware does not equate to CAD and Gaming math. | | |
| ▲ | SR2Z 5 hours ago | parent | next [-] | | How many of the last ten years have had some kind of "temporary" GPU shortage? It was crypto, now it's LLMs, who knows what's next? The only winning strategy for these guys is to exploit the market for all it's worth during shortages and carefully control production to manage the inevitable gluts. | |
| ▲ | TheDong 5 hours ago | parent | prev | next [-] | | > AI has reached a state of software issue, not hardware Citation very much needed. At the very least, OpenAI seems to believe more and larger datacenters is the path to better models... and they've been right about that every time so far. | | |
| ▲ | eitally 4 hours ago | parent | next [-] | | Moreover, all the frontier labs and hyperscalers are capacity constrained, and will be for the foreseeable future. | |
| ▲ | leptons 2 hours ago | parent | prev [-] | | >OpenAI seems to believe more and larger datacenters is the path to better models... Does that mean they produce better slop, or more slop faster? |
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| ▲ | dylan604 5 hours ago | parent | prev [-] | | Great, when the AI bubble bursts, they can repackage their AI chips into consumer cards! /s |
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| ▲ | eitally 4 hours ago | parent | prev | next [-] |
| Why would they do that? They launched the DGX Spark last year with multiple hardware OEMs selling flavors of the reference device (Dell, Lenovo, Asus). That contains a desktop-sized Grace Blackwell architecture GPU (GB10), and word on the street is that they're moving into laptops this year. Their market is the same market Apple is pitching the MacBook 5 Pro/Max, too: devs wanting local models. It's not currently a large market, but it's growing quickly. It makes far more sense for Nvidia to build hardware to service this market than to overly focus on their gaming lines. RTX GPUs are sell once. GB-containing consumer devices are "sell once, but then collect recurring revenue when the workloads those developers build hit production on a cloud somewhere." |
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| ▲ | returnInfinity 5 hours ago | parent | prev | next [-] |
| And why should a business do that? Limited chip production capacity be spent on most profitable ventures. |
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| ▲ | blitzar 2 hours ago | parent | next [-] | | You saying they should have gone all in on Crypto mining? | |
| ▲ | bigstrat2003 4 hours ago | parent | prev | next [-] | | If I were Nvidia, I would give more attention to consumer GPUs to hedge my bets. When (not if) this AI bubble pops, their AI customers will become worthless to them very quickly as they won't be buying more GPUs. And when that day comes, I would want to still have consumers to sell to, rather than have them all buying from AMD because I ignored them. | | |
| ▲ | armadyl 2 hours ago | parent | next [-] | | the only way this argument works is if AMD somehow creates GPUs that run circles around nvidia and boxes them out price wise, and at the same them themselves don’t start prioritizing enterprise customers more. otherwise consumers will choose the best performing gpu possible, generally people don’t care about companies turning their backs on consumers in this way | |
| ▲ | bitfilped 2 hours ago | parent | prev [-] | | Consumer GPUs are too small of a slice of their revenue to matter to them anymore. | | |
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| ▲ | fishcrackers 5 hours ago | parent | prev | next [-] | | [dead] | |
| ▲ | tl2do 5 hours ago | parent | prev [-] | | I should admit this is partly my personal preference.
That said, gaming has been a durable market for decades, and there’s a strong cycle where better chips enable better games, which then drives more demand for better chips. | | |
| ▲ | ravst3s 5 hours ago | parent [-] | | That same virtuous cycle works for their data center segment Every GW of Blackwell generates more revenue than the entire gaming business does in 1 year. |
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| ▲ | reilly3000 4 hours ago | parent | prev | next [-] |
| This leaves an opening for Intel to get in the game. Their new lines have a pretty decent value proposition for mid-tier gaming. If they focused on the higher end they would could own it. There is massive latent demand because of the NVidia situation. It’s easier to make money from than the R&D to build the next Blackwell but there is just as much demand for local/private models on the prosumer level. |
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| ▲ | chii 5 hours ago | parent | prev | next [-] |
| nvidia will come back to the consumer side when the AI side stops being as profitable. Right now, it still seems like the margins for AI hardware is way higher than the same consumer product would sell for. |
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| ▲ | Shitty-kitty 3 hours ago | parent | prev | next [-] |
| Nvidia designs chips, it has no production capabilities. Most of their chips are produced by TSMC and memory come from SK Hynix. |
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| ▲ | TiredOfLife 31 minutes ago | parent | prev | next [-] |
| Fabs are expensive, take decades to make and most important are very hard. |
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| ▲ | dev_l1x_be 2 hours ago | parent | prev [-] |
| Their model offerings are also need some love. |
